(Yicai Global) Aug. 30 -- China's rare earth industry is rebounding after years of consolidation and it has made progress in terms of transformations and upgrades, Thepaper.cn reported.

The industry has achieved remarkably and is working to change the "dig and sell situation," He Weihua, deputy mayor of Baotou, said at the Ninth China Baotou Rare Earth Industry Forum on Monday.

Baotou has initially formed industrial chains for rare earth magnets, polishing, hydrogen storage, alloys and catalysts, He said. 

Some 106 rare earth companies operate in Baotou, and 85 of them focus on new material and terminal applications, said He. They have formed a system for mining, smelting, research and development, deep processing and applications. The rare earth industry output in Baotou was valued at USD2.3 billion (CNY15 billion) last year.

Deals for 24 projects with a total investment of CNY15 billion were signed during the forum. Two thirds of the companies involved in the agreements were technology companies focused on areas such as robotics, magnetic materials and new materials companies. The other third included mechanical and electrical groups as well as rare earth R&D groups.

Baotou is called China's rare earth capital. It has proven rare earth reserves of 43.5 million tons, accounting for 38 percent and 83 percent of proven reserves in the world China, respectively.

The Inner Mongolia Rare Earth New Materials Industry Park was inaugurated in Baotou on Monday.